The competitive landscape offers an analysis of the key developments by companies, between 2016 and 2018. The global market for automotive plastics is projected to witness significant growth during the forecast period, from 2018 to 2023. The market is estimated to register a robust CAGR of 10.45%. In recent years, the market has witnessed some important developments on the part of the key players, and there is rising demand for automotive plastics in major applications, such as interior components, exterior components, under the hood, powertrain, and electrical & electronics. Increasing demand for fuel-efficient automobiles and growing production of passengers and commercial vehicles is projected to boost the demand for automotive plastics during the review period. Key players are, therefore, expanding their presence and increasing their production capacities to meet the anticipated market demand for automotive plastics in the coming years.
BASF SE, LANXESS, Evonik Industries AG, SABIC, Koninklijke DSM NV, Teijin Limited, LyondellBasell Industries Holdings BV, Mitsubishi Chemical Corporation, DowDuPont, and Covestro AG are some of the leading automotive plastics manufacturers.
This global automotive plastics market study is covering a significant number of leading manufacturers of automotive plastics. Majority of the automotive plastics manufacturers in this market are focusing on investments to start new production units, new product launches, and capacity expansion of their domestic and overseas facilities to meet the rising demand for the product.
Date
Approach
Development
November 2018
Product Launch
LANXESS has announced the launch of its new polyamide product range Durethan Performance for periodically stressed components in automobiles, such as air-intake systems and oil-filter modules or parking brakes. The mechanical properties of the polyamide-6 based Durethan Performance products will make it a cost-effective alternative material for polyamide 66 compounds in various automotive applications.
September 2018
Investment
LANXESS announced to build a new production plant for high-performance plastics in Krefeld-Uerdingen, Germany. The construction of the plant is expected to begin in the fourth quarter of 2018 and plant operation to start in the second half of 2019. LANXESS will produce Durethan and Pocan engineering plastics, which are used mainly in the automotive and the electrical and electronics industries.
September 2018
Expansion
Mitsubishi Chemical Corporation announced plans to expand its performance polymers product line with the establishment of a new production plant in China in 2019. This plant will be particularly to produce PVC slush powder, which is suitable for automotive interior panel skins and other parts.
August 2018
Acquisition
LyondellBasell Industries Holdings BV acquired A. Schulman Inc, a global producer, and supplier of plastic compounding products, in a deal which was finalized at USD 2.25 billion. The Ohio-based Schulman combined with LyondellBasell's compounding business and will operate as Advanced Polymer Solutions (APS), a reporting segment within LyondellBasell. APS will also include the Catalloy specialty resins and polybutene-1 materials of LyondellBasell.
June 2018
Expansion
SABIC announced the expansion of its research and development operations in Selkirk, NY, US. This expansion is expected to be completed in mid-2019, which will include a 10,000-square-foot warehouse for raw materials storage, 10,000 square feet of office space, and 2,500 square feet of manufacturing space for the formulation, blending, and testing. This expansion will allow SABIC to expand its technical capabilities in areas of polymer processing, testing, and product development and help drive innovation to important US industries such as clean energy, medical devices, and automotive.
April 2018
Expansion
BASF SE started a new production line for its high-temperature resistant thermoplastic- Ultrason, in Yeosu, Korea. This expansion will increase BASF’s annual polyarylsulfone production capacity by six6 kilotons and aims to serve the fast-growing automotive, electronics, and water filtration industries in the Asian market.
February 2018
Product Launch
Teijin Limited launched its recently developed formable gasoline-resistant film made of PLANEXT bioplastic to replace chrome plating for automotive applications. This product is mainly used for vehicle door handles to replace the conventional door handles with electro-conductive chrome plating coated on a resin base.
November 2017
Investment
LANXESS announced to invest approximately USD 23 million in building a new plant for high-performance plastics in Changzhou, China. The plant is estimated to commence in the second quarter of 2019 and will produce up to 25,000 metric tons of Durethan- and Pocan-branded high-tech plastics for the automotive sector and the electric and electronics industry.
November 2017
Expansion
Koninklijke DSM NV announced the capacity expansion of its specialty polymers plants at Emmen and Geleen, the Netherlands, to cater to the increasing product demand in Europe. This includes production capacity expansion of high-temperature polyamides (PAs) and thermoplastic copolyesters (TPC) for the automotive and electronics industries.
November 2017
Expansion
Koninklijke DSM NV announced the capacity expansion of its specialty polymers plants at Emmen and Geleen, the Netherlands, to cater to the increasing product demand in Europe. This includes production capacity expansion of high-temperature polyamides (PAs) and thermoplastic copolyesters (TPC) for the automotive and electronics industries.
September 2017
Expansion
DowDuPont has announced the capacity expansion of its Zytel and Hytrel brand products at its Shenzhen site, China. The company will invest approximately USD 42 million to install three new production lines by the end of the second quarter of 2019 and have them fully operational by the end of 2019. This expansion is in line with the increasing demand for these specialty resins in the automotive, consumer, and electronics markets.
June 2017
Product Launch
Teijin unveiled the world’s first polycarbonate (PC)-resin pillar-less automotive front window. This product was specifically developed for use in the Tommykaira ZZ, a sporty electric vehicle (EV) produced by GLM Co., Ltd., an EV manufacturer. Teijin’s PC-resin window exhibits high resistance to abrasion and weather and meets new Japanese standards that became effective in July 2017.
May 2017
Expansion
Covestro AG has announced the expansion of the production capacity for polycarbonate by 200,000 tons per year at its Caojing site in Shanghai, China. The current annual production capacity of the plant is 400,000 tons, and the capacity expansion is estimated to be completed by the end of 2019. This is likely to help the company to meet the rapidly growing demand for polycarbonate resins and blends in China, particularly from the automotive industry.
Threat of New Entrants
Considering the historical and current scenario in the global automotive plastics market, the threat of new entrants is expected to be moderate. This can be attributed to the presence of several tier-1 players and the risks involved due to volatility in raw material prices. However, increasing demand for plastics in the automotive industry and rising production of lightweight vehicles are likely to incentivize new entrants in this market.
Threat of Rivalry
The global automotive plastics market is estimated to have a moderate to high threat of rivalry. This analysis is attributed to the presence of substantial market players, which are promptly adopting various business tactics such as product launch, supply & distribution agreements, capacity expansion, and launch of new operating facilities beyond the traditional regions to attain sizeable revenue and considerable market share. In addition to this, the market has been observed to be fragmented with the presence of both tier 1 and tier 2 players, along with small domestic manufacturers. Moreover, the competition is also influenced by the technological up-gradation and smart market tactics adopted to by leading players to dodge the fluctuating price scenario.
Threat of Substitutes
The threat of substitutes for automotive plastics is expected to be moderate to low. The substitution of crude oil derived plastics is interchangeable with bioplastics in some of the automotive applications. However, in the following years, use of bioplastic as an alternative to crude oil derived plastics is expected to increase.
Bargaining Power of Suppliers
The bargaining power of suppliers is estimated to be high. The demand for automotive plastics in increasing at a significant rate and less substantial alternatives are available in the market to substitute use of plastics in automotive light weighting. Additionally, unbalanced raw material supply on the backdrop of fluctuating crude oil prices is likely to favor the bargaining power of suppliers.
Bargaining Power of Buyers
The bargaining power of buyers is anticipated to be low owing to the fluctuating raw material prices of automotive plastics. There is an increasing demand for automotive plastics and less availability of equivalent substitutes to automotive plastics which is likely to lower the bargaining power of buyers.
